HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2015

Apr 27, 2015

ASX Release 28 April 2015

HIGHFIELD RESOURCES APPLIES FOR VIPASCA PROJECT EXTENSION AND NEW IZAGA POTASH PROJECT

Highlights

•  Three new Investigation Permits applied for in Navarra Province, along strike of the potash bearing evaporite between Highfield’s Vipasca and Sierra del Perdón Potash Projects

•  Investigation Permits are:

  • Borneau , covering 78 km[2]

  • Osquia , covering 79 km[2]

  • Girardi , covering 76 km[2]

•  Borneau Investigation Permit extends Highfield’s Vipasca Project along strike about 15 km to the north west

•  Girardi and Osquia Investigation Permits create the new Izaga Potash Project

•  Historical drilling in the Izaga Project area intersected the evaporitic unit with some drill holes intersecting potash mineralisation

•  Historic 2D seismic suggests the evaporite starts at depths to surface of less than 300m in both Projects

Spanish potash developer Highfield Resources Limited (HFR: ASX) (“Highfield” or “the Company”) is pleased to advise it has applied to the province of Navarra for three new Investigation Permits to add to its four 100% owned potash projects in Spain´s Ebro potash producing basin.

Highfield’s Managing Director Anthony Hall commented:

“The three permit applications position Highfield with five 100% owned projects and a substantial development pipeline in support of our long-term quest to become a significant global potash producer.

“We have worked hard to consolidate all of the potential potash bearing evaporite in the Navarra Province, in a sub basin of the wider Ebro Basin, while continually focusing on prioritising the accelerated development of our flagship Muga Project. Our larger Vipasca and new Izaga Projects are likely to benefit from the development work completed at Muga with both appearing to have similar attributes.”

Highfield Resources Ltd. ACN 153 918 257 ASX: HFR

Issued Capital 252.0 million shares 51.5 million performance shares 43.5 million options

Registered Office C/– HLB Mann Judd 169 Fullarton Road Dulwich, SA 5065 Australia

Head Office Avenida Carlos III, 13 - 1°B, 31002 Pamplona, Spain

–––––––––––––––– ––––––––––––––––––

Directors Derek Carter Richard Crookes Anthony Hall Owen Hegarty Pedro Rodriguez

Company Secretary Donald Stephens

T: +61 8 8133 5098 T: +34 948 050 577 F: +61 8 8431 3502 F: +34 948 050 578

==> picture [537 x 423] intentionally omitted <==

Figure 1: Location of Highfield´s new Izaga Project and the Vipasca Extension in the context of all of Highfield´s Potash Projects in Northern Spain

Page 2 of 6

Vipasca Potash Project

On 27 April 2015, the Company applied for the Borneau and Osquia Investigation Permits with a view to extending the Vipasca Project to the north west along the strike of the deposit that runs to the south east into the Company’s 100% owned Muga and Pintano Projects.

The Bornea Investigation Permit covers an area of 78km[2] , whilst the Osquia Investigation Permit covers an area of 79km[2] . Approximately half of the Osquia permit is included in the Vipasca Project resulting in extending the Project by over 100km[2] .

==> picture [493 x 365] intentionally omitted <==

Figure 2: Map of the Vipasca Potash Project showing the new permit extensions of Borneau and Osquia

The Bornea Investigation Permit abuts the current Vispasca Investigation Permit that appears to host the continuation of Muga sub basin as demonstrated in drill holes J13-06 and J13-13 completed by the Company (within Goyo permit area of Muga Potash Project that abuts the Vipasca permit).

Historical studies show a lack of structures that could limit the continuity of the basin towards this area. France based, IGT is currently completing both gravimetry and time domain electromagnetic

Page 3 of 6

(TDEM) campaigns in the eastern section of the Vipasca Investigation Permit area that the Company expects to show the continuity of the evaporitic unit into the north west.

A report prepared by Potasas de Subiza in 1987, “ Recursos minerales Javier-Los Pintanos y Monreal”, suggested that there is intermittent outcropping of the evaporitic unit across 7km east to west between the extended Vipasca permit area and the new Izaga Project. This provides a strong indication of continuity of the underlying evaporitic sequence.

Izaga Potash Project

On 27 April 2015 the Company applied for the Girardi Investigation Permit. This permit complements the northern area of the Osquia Permit to complete the new Izaga Potash Project. The Izaga Project is located in a syncline structure abutting the northern extent of the expanded Vipasca Project (See figure 5). The Izaga Project areas are defined by the 7km east-west outcropping noted in the Potasas de Subiza report from 1987.

The Girardi Investigation Permit covers an area of 76km[2] , with the Osquia Investigation Permit covering an area of 79km[2] . Approximately half of the Osquia permit is included in the Izaga Project resulting in a project size of more than 100km[2] .

==> picture [479 x 364] intentionally omitted <==

Figure 3: Map of the Izaga Potash Project showing the permits of Girardi and Osquia and historic potash exploration drill holes

Page 4 of 6

Historic drill holes completed on the northern flank of the syncline were reported as negative, whereas drill holes in the southern areas showed potassium values (Potasas de Subiza report from 1987).

==> picture [480 x 135] intentionally omitted <==

Figure 4: Cross Section showing the northern section of the Vipasca evaporitic unit outcropping in the central part of the section and the southern flank of Izaga syncline on the right hand side of the drawing (red colour showing evaporitic unit)

For More Information www.highfieldresources.com.au Company

Anthony Hall Managing Director Ph: + 34 617 872 100 Hayden Locke Head of Corporate Development Ph: +34 609 811 257

Investor Relations Executives

Simon Hinsley APAC Investor Relations Ph: +61 401 809 653

Nuala Gallagher / Simon Hudson UK Investor Relations Ph: +44 207 920 3150

Page 5 of 6

About Highfield Resources

Highfield Resources is an ASX-listed potash company with five 100%-owned projects located in Spain.

Highfield’s Muga, Vipasca, Pintano, Izaga and Sierra del Perdón potash projects are located in the Ebro potash producing basin in Northern Spain covering a project area of over 600km[2] . The Sierra del Perdón project includes two former operating mines.

The Company has recently completed a definitive feasibility study for its flagship Muga Project and is working towards commencing construction in the fourth quarter of 2015.

==> picture [525 x 397] intentionally omitted <==

Figure 5: Location of Highfield´s Muga, Vipasca, Pintano, Izaga and Sierra del Perdón Projects in Northern Spain

Page 6 of 6